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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 29, 1962)
op tock "Market Oodicotes Recovery Rogue Valley Edition Two Sections 57th Year Price 10 Cents MedfordJTribune 16 Pages MEDFORD, OREGON, TUESDAY, MAY The Beauties of Scenic The first Protestant chruch.wcst of the Rocky mountains, still serves its members. Russia Reneges on Agreement To Condemn War Propaganda Geneva - (UPD - The Soviet Union today reneged on an East-West agreement to con demn war propaganda and plunged the 17-nation disarm ament conference into a ma jor crisis. . Soviet Deputy Foreign Min ister Valerian Zorin told the conference his country does not accept the declaration condemning war propaganda which he himself had helped draft last week. The conference had been President is 45 Years Old Today Washington - (UPD r Presi dent Kennedy was 45 years old today a youth among .venerable world statesmen, a scarred veteran of political crises at home. Beyond greetings from his wife and children this morn ing and felicitations from his staff, a regular work day came ahead of any real birth day observance. A quiet family dinner par ty was set for tonight at Glen Ora, the Kennedy country place outside Middleburg, Va., where the president will spend Memorial day before returning to the White House Thursday. HEWSCBRIEFS itims from m lF AtouNO thi oioii FRANCE HIT BY NATIONWIDE STRIKE Piris-fPI-A 12-hour nation-wide strike) of gat and elec- ,Ua,i halt,! commuter trains, slowed down Indus- try. and created difficulties for millions of Frenchmen today. SERGEANT YORK TAKES TURN FOR WORSE Jamestown. TennlPI-Sgt. Alvin C. York, 74, America's fabled World War I Hero, took a turn for the worse today and was rushed by ambulance to a hospital in Nashville. TERRORISTS CONTINUE TO ATTACK MOSLEMS Aligers, Algeria-APIi-Secre! Army Organisation terrorist continued their random attacks on Moslems today but the tempo of killings dropped sharply following a sudden OAS proposal tor an Algerian peace settlement wlthoifl France. (Oregon State supposed to approve the dec laration today. - U.S. Ambassador Arthur H. Dean, white-faced with obvi ous anger, told Zorin that Russia had "blown up" discus sion of the whole matter. Zorin read to a stunned plenary session of the confer ence a Soviet government statement calling for far reaching changes in the dec laration he and Dean drafted last week. He said "events in recent days" made the amendments necessary, and cited West Germany, Laos and South Viet Nam as examples of worsening tensions in the world. He particularly singled out an article written in a NATO publication by West German Defense Minister Franz Josef Strauss which he claimed called for the arming of West German forces with nuclear Theft Reported from Central Point Office Central Point - The theft of approximately $25 in coins from the office of Dr. Alvin Roberts; 547 East Pine st., Central Point, was reported Monday. Central Point police said someone broke in through a rear window Sunday or early Monday morning. Also taken was a check protector. 29, 1962 No. 59 Oregon Highway Commission Photo) built in 1834 in Jacksonville, weapons for "use against the Soviet people. Dean promptly shot back that the article in question not -only was misquoted by Zorin but was two years old. "The Soviet Union has blown up these negotiations, scuttled them for purposes known only to themselves," Dean said. "It is useless to continue further negotiations on such a matter Proposed Budget For County Is Signed by Group Jackson county budget com mittee members this morning signed copies of the proposed 1962-63 budget estimate total ing $4,203,135.08. This is ap proximately $56,000 lower than the current year budget. A public hearing will be held Tuesday, June 26, at 8 p.m. The county will start with a budget balance July 1 of $378,547.88. Other receipts will total $3,014,588.10, ac cording to current estimates. The cash working fund as of July 1 will include $415,' 344.52 and available cash of $703,892.40. No tax levy will be necessary for the county budget. Budget estimates for 1062 63 in the various categories are general county fund, $1,' 873.576.24; general road fund. $1,661,819.50: Medford libra ry fund. $73,943.04; Ashland library fund, $7,499; Rogue River library fund. $516; emergency fund, $50,000; Civil Defense fund. $10,432; building improvement and maintenance. $45,444; Juvenile detention operation and main tenance fund, $25,504,: capital .mprovements and sinking fnntU S150.000- county school fund, S240.590;,school district bond and interest fund $120, 295; county historical fund. $33,519. The proposed budget may be revised following the pub lic hearing. Market Drop Cause Cited In 4 Factors By SYLVIA PORTER New York What was behind Monday's historic crash in the stock market one of the worst breaks in the 20th century, and certainly the most severe in modern times? The answer falls into four broad classifications: (1) Margin calls went out from brokers over the week end to shareholders all over the country who had bought stocks on borrowed capital demanding that the owners put up additional cash to back up their borrowing. The slump of the past few weeks had pushed their equity in their stocks below the minimum permitted by Federal Reserve Board regulations and Stock Exchange rules. As the break got worse, the calls for additional cash multiplied and many disillusioned, frightened and cash-shy holders were sold out. In view of the extent of Monday's break, there's going to be a lot more of the same today. (2) Fear feeds on fear, and as the market has declined week after week fear of a massive downturn has caused investors who had no intentions of selling a couple of months ago to get out while they still could preserve some of their ncstegg. Always, big movements in the stock markets tend to exaggeration, particularly on the downside. This happened Monday and what happened Monday could make It happen again. (3) There has been liquidation of U.S. corporation stocks by foreign holders, especially by the Swiss, according to reliable sources. This has helped create air pockets in the stock markets. There's no way liquidation has been from foreigners, but it has been a factor. (4) The big buyers with funds to invest the mutual funds, institutional investors, wealthy individuals have been largely sitting by, waiting to see how far this move ment would go before they step back in on a worthwhile scale. Over the Week end; I would happen Monday when I on the exchanges were unusually slim. The lightness of underlying buying orders could have only meant a major decline when selling orders started to pour in and ' they poured. - Each of these is a key reason, but each is basically technical. Is the stock market also flashing the the funda mental message that a major business downswing is on the way? The answer is no. Admittedly, this has been a spectacular crack-up. But, by this decline, the considered jugment of responsible au thorities still is, the stock market is simply belatedly rec ognizing what thoughtful observers have been emphasizing for some time namely, that the era of great inflation is not going to take off soon again. Those who bought stocks at fabulously overpriced levels which no one could justify by common sense reasoning or traditional yardsticks, thought that inflation would nail them out and there always would be one more sucker to buy. Inflation is not going to do this for them in the foreseeable The stock market also has investments in view of the moderate character of the 1961-62 business advance. Earnings obivously are not going to be as fantastically fat as the optimists anticipated a few months back. ' The stock market has been tractiveness of other mediums for savings, too. Just simple savings accounts pay up to 4 or 4 Mi per cent now, and bonds as well have been returning much more favorable returns per year than most of the popular stocks. That the stock market is a leading Indicator of busi ness is indisputable. Often in the past it has turned up or down long before a similar movement in the economy. But it is only one of the leading indicators and, as Federal Reserve Board Governor George W. Mitchell remarked in a major policy speech in Indiana recently, the fact over looked is "that the stock market has sometimes declined significantly when the underlying business trend did not change materially. Thus, the composite price averages dropped 9 per cent in the summer of 1959, 11 per cent in the fall of 1958 and IS per cent in the summer of 1950. In each instance, the market had more than regained its losses before recession-related deciinis commenced." What, though, if the above is too pollyannish and the stock market break is telegraphing a signal of bad trouble ahead for the U.S. economy? Then,, the administration and Congress can and I wager they will move with powerful weapons, to counteract the business decline before it gets rolling. Across-the-board tax cuts for corporations and individuals would be the greatest spur to business and the most potent anti-recession weapon that exists. Serious talk of this is mounting in Washington and the talk is serious, not just election year politics. What the stock market has done and Is doing is return ing to common sense realities. Descent from glorious dreams of get-rich-quick to hard facts is never fun. Many are being badly hurt in the market today, hurt worse than they dreamed possible. But this is not "another 1929" and if it ever shows signs of turning into one, we have the brains, the know-how and the determination to prevent it. WEATHER FORECAST: Moitly cloudy to night and Wednegdiy. Chance of a few ihoweri over the mounUini Wedneid&y after noon. A little cooler Wednes day. Low tonlfht near 4. High tomorrow (5 to 70. Temp. Highest Yesterday 71 Lowest This Morning 48 Prec. to 5 p.m. Yesterday. T. Prec. to 10 a.m. Today, none. Our Skies Tonight Sunset today 7:39 p.m. Sunrise tomorrow .4 31 a.m. Moonrlte tomorrow ... 3:10 a.m. New Moon Saturday Tht planet Mars, seen near the Moon tonight. Is now brighter than the North Star. Next year on this date Mars and the Moon will be In the evening sky near Regulua. Eichmann Verdict Upheld by Court Jerusalem, Israel -OIPp- The Israeli supreme court today upheld the conviction and death sentence imposed upon former Nazi SS officer Adolf Eichmann for the slaughter of six million Jews. The verdict meant only President Itzhak Ben-Zvi could save him from the gal of calculating how big the had a forewarning of what was told that bids for stocks . future. been re-evaluating stocks as reflecting the increasing at Space Explosions Planned by U.S. Washington-(UPP-The United States this week will start ex ploding rocket-borne nuclear weapons in space. The explosions, their mam moth fireballs, and the bril liant auroral displays they trigger will be the most spec tacular fireworks ever staged by man. The weapons will be hurled Into space by Thor missiles, according to informed sources over Johnston Island 800 miles south-southwest of Honolulu. Three and perhaps four space shots are planned. One, a Junior-size H-bomb to be exploded at an altitude of about SOO miles, will be the highest nuclear shot ever I detonated. I The tests, expected to con tinue into July, will be of in tense interest to scientists all over the world. aThe scientist 'will be alerted to stud) ef Ifccts of the blasts on the earth's magnetic field and the Van Allen ladiatlon zones 'enveloping the planet. Tickers Running 75 Minutes Late In Lively Trading Blue Chips Show Advance Attempts New York - (UPll - Prices slumped again in early Wall Street trading today but "flash" prices in early after noon indicated a recovery rally for the bellwether blue chip stocks. Leading the advance, after a day of trading Monday in which the market suffered its sharpest drop since 1929, were such leaders as Ameri can Telephone, Standard Oil of New Jersey, Bethlehem Steel, Scars Roebuck and Du Pont. IBM Up Sharply The closely watched Inter national Business Machines stock opened at 365, up $4 a share, and at 9:55 a.m. (PST) a "flash'' price - delivered as the ticker reports fell far be hind - showed it at 382, up $21. Brokerage houses swamped with orders were resigned to another long night of catch ing up. Ticker tapes were as much as 75 minutes late in reporting big board trading by 10:45 a.m. Signs of the upward trend in major issues began to de velop. Prices Included Ameri can Telephone & Telegraph at 107, up $6.38; Standard of New Jersey 51, up $5; General Motors 49 's, up 50 cents; U.S. Steel, 52, up $2; Chrysler 43, up 63 cents; Royal Dutch 37, up $3.75. Others which turned upward includ ed Bethlehem Steel, Sears Roebuck and Allied Chemi cal. ASE Trading Lively Trading on the American Stock Exchange, second larg est of the nation's exchanges, was at 2,610,000 after only two hours of trading, close to its figure for the entire day Monday. Stock markets in Europe, Canada, Western Europe and Japan reflected the wave of selling that resulted In a 'paper loss of $20.5 billion Monday on the New York stock market. London report- ed its heaviest one-day drop in years. International stocks dropped as much as 60 points in Amsterdam. The big board tape was late almost from the start. Volume at midsession was almost twice as heavy as at the same time Monday. (See story on page 2A) Pageant Finalist Virginia Rausch Another of the finalists for the Miss Rogue Valley Pag eant to be held June 2 at the Oregon Shakespearean Festi val Theater in Ashland Is Virginia Rausch. She has brown hair and brown eyes, is 5 feet 5 inches tall and weighs 122 pounds. A dramatic read ing will be her contribution to the talent segment of the program. Unander's Campaign Said To Cost $29,321 Snlcm-H'PD-Il appeared to day that the most costly cam paign of the Oregon primary this year was that of Sig Unandcr of Portland, who won the Republican U.S. Sen ate nomination. Unander's committee said it spent $29,321. The successful effort to renominate Sen. V.yne Mora.: (D-Orc.) cost nearly $19,000 -,ythe sc1 biggest campaign cxpciHi ilure of the primary. f TICKER STUDIED Dick Brown, left, United Press Inter national financial wire editor, and Jesse Bogue, UPI ft nancial editor, look at a stock market ticker in the wire service's office in New York after the stock market plunged in its worst break since the crash of 1929. Brown is holding a mass of ticker tape, the result of the huge selling spree that sent Dow Jones averages down 34.95 points during the day. (UPI) Labor Situation in Area Orchards Said To Be More Hopeful Members of the Medford fruit industry today, describ ed the orchard labor situation as "hopeful." A meeting with U.S. Labor Department officials has not yet been arranged, since many fruit shippers and growers were attending a meeting in Portland of the Orcgon-Wash-ington-California Pear Bu reau. It looks as if Sen. Wayne Morse (D-Ore.) is making some headway, since labor officials have Indicated they are will ing to discuss the problem," a spokesman for the fruit in dustry said. Also, since the Oregon sen ator conferred with growers here April 14, Labor Secre tary Arthur Coldberg said the Labor Department deci sion to prohibit Mexican har vest labor north of the Cali fornia border will be review ed. Earlier it had been re ported that no Mexican Na tionals would be allowed Into Oregon. Protest Labor Ruling The local fruit industry also has protested the depart ment of labor ruling guaran teeing $1 an hour minimum wage for pickers. . In a letter to Wayne Morse, the labor secretary stated: "The department has long recognized that the employ ment of workers handicapped by age or physical or mental condition presents a problem when minimum wages or wage guarantees are involv ed. You may be assured that special provisions will be ap proved for such workers, making It clear that they are not guaranteed the same earn ings as the able-bodied Mexi can worker." Not Impose Hardship However, Goldberg also said: "These figures (refer ring to Labor Department rec ords of average piece rate wages paid pickers in this county) Indicate that the $1 per hour guarantee would not In Itself Impose a hardship." Local growers emphasize that the Mexican Nationals are needed during the winter pear harvest which comes near tho end of the season. This Is a time when students are returning to high schools and transient pickers' have moved to the apple harvest in Hood River, Ore., and We natchce, Wash. Local growers said they would not object fixing the piece rate to assure $1 an hnjir average dally rate. But they do object to a minimum wage which could force them to eliminate women and chil dren and less, skilled pickers, they said. Memorial Day Services Slated in Area Tomorrow Memorial Day services are s c h e d ulcd throughout the Rogue valley tomorrow, when governmental offices and most retail , stores will be closed in observance of the holiday. . Veterans groups In Medford will meet at 11 a.m. In the Library park, Eighth and Holly sts., to honor the war dead of the area.,. . . . The Rev. Robert , Cull of Medford Assembly of God church will give the invoca tion, and the Muzzioli' accor dion band will provide music. Volleys will be fired by a National Guard squad, and taps will be sounded by Bliss Heine. The Rev. John Ilg of Sacred Heart Catholic church will give the benediction. Ceremonies In the Eagle Point ' Veterans Administra tion cemetery are scheduled for 1:30 p.m. Ashland Services In Ashland, the Walter A. Phillips post, Veterans of For eign Wars, will be in charge of the 10:30 a.m. service in Mountain View cemetery. Transportation for those de siring it will be provided at the Plaza and the public li brary at 10:15 a.m.. Others who need transportation should call Ashland 482-0467. The Rev. Edward G. Wulfe- kuchlcr will give the Invoca tion and benediction and Dr. Francis Haines will give the address. Wreaths will be placed to honor war dead, and John Rcid will play taps. A Memorial covered dish dinner will be served at 12:30 p.m. in the Ashland American Le gion hall on Winburn way. In Jacksonville, Centennial Post 100, American Legion, and auxiliary will conduct services at 10:30 a.m. In the Jack sonville cemetery. At 1:30 p.m., the Woman's Relief Corps, auxiliary to the Wil liam H. Harrison post, Grand Army of the Republic, will conduct a program of dedica tion md presentation of a plaque and flag to the Jack sonville cemetery, q Hodges Calls for Cut To Stimulate Nation's Economy Kennedy Plans No Dramatic Gesture Washington-IUPD-Commerce Secretary Luther H. Hodges called today for cuts in per sonal and corporation income taxes possibly this year to reassure business and stimu late the economy.' Hodges said tax reduction was overdue anyway and that the plunging stock market might make it desirable for the administration to move on the tax cut front earlier than it had planned. Treasury Secretary Doug las Dillon said meantime that Congress should take a major step toward shoring up the jittery market by speeding to passage President Kennedy's proposed tax credit for busi ness. Prompt Endorsement His appeal won prompt en dorsement from Democratic congressional leaders who earlier had discussed the mar ket with the chief executive at the White House. Dillon said approval of the tax credit measure was "the very best thing Congress could do now." The adminis tration measure, now blocked in the Senate Finance Com mittee, would allow business to write off 8 per cent of the cost of new equipment. No Dramatics Planned Speaker John McCormack of Massachusetts and other legislative leaders who met with Kennedy said he in dicated, however, that he planned no dramatic gesture to try to restore market con fidence. There were these other Washington developments: -Ladd Plumley, president of the U.S.' Chamber of Com merce, said . Kennedy's suc cessful power, olav against the 1 steel price, hike and a weak recovery' Jrom the recession contributed' to the market break. Plumley told a na tional Press Club lunch Ken nedy should take vigorous ac tion to. restore business confi dence. - , , . Verbal Blows -Traded -Senate Democrats and Re publicans traded new verbal blows over the economy. Sen ate Democratic Whip Hubert H. Humphrey (Minn.) denied GOP charges that Kennedy had failed to keep his cam paign pledges. Sen. Barry Goldwater (R-Ariz.) said there had been too many words and not enough action from the White House. Chairman William L. Cary of the Securities & Exchange commission told the House Commerce Committee his agency had launched a study of "who and what groups" figured in heavy stock sales which led .to the market break. He hoped for some findings in 'about two weeks. Break in Burglary Cases Reported . The first break in a series of safe burlarics in the area that for weeks had police officers stumped, may have occurred in Reno, Nev., last night when a local suspect drew attention to himself by cashing In a large amount of small change at a gambling casino there. Two Medford police offi cers, Lt. Lyle C. Perkins and Lt. Jack McMillan, left for Reno about 2 o'clock this morning to question the sus pect, Doyle Dwayne Trapp, 28, of 718 West 14th st. A warrant charging Trapp with burglary was issued by Dis trict Attorney Alan B. Holmes this morning. .. Trapp was detained by Reno police after he entered a gambling casino and asked an attendant, an off-duty Reno police officer, to cash in about $200 in dimes. The Reno officer, who had earlier seen an all-points bul letin Issued by the Medford police department following the safe burglary at the Pay less Drugstore in the Medford Shopping Center Sunday night in which about $1,000 in change was stolen, notified his headquarters and officers took Trapp into custody for questioning. Medford Police Chief Charles P. Champlin said that Trapp will be questioned in connection with at least six safe burglaries that have oc curred in Afdford in recent ' weeks, as well as a number of other crimea in the area, o o
